5 Types Of Buyers Will Be Rushing Into The Housing Market In 2013

With the housing market bottoming in 2012, economists and other
experts are becoming increasingly optimistic about the U.S.
housing market in 2013.

From
John Burns Real Estate Consulting: "Assuming our leaders in
DC come to some sort of agreement that keeps the economy growing
and interest rates low, which seems like the most reasonable
assumption, here is what will happen,"

Investors: Investors and, yes, even flippers
will continue to grow in numbers as they realize housing is the
best risk-adjusted return on their money.

Boomerang buyers: Foreclosed homeowners, who
are currently renting homes, will come back in droves. In
Phoenix, they are paying $1,300 in rent for a home whose
mortgage payment would be $1,000. That situation is not
sustainable. The Federal Housing Administration and Department
of Veterans Affairs have low down payment programs with
insurance premiums that push rates near 5.0%. Those payments
are still very affordable.

Entry-level buyers: First-time homeowners, who
have been sitting on the sidelines waiting for a sign of the
bottom, will hear about price increases in their desired
neighborhood and rush to become homeowners.

Move-down buyers: Empty nesters and retirees,
who have plenty of equity in their existing home, will buy a
home that is more suitable to their current lifestyle, which
may or may not include adult children as well as their aging
parents.

Moveup buyers: The price appreciation that
occurred in the last year has already lifted 1 million
underwater homeowners above water with future price
appreciation to lift them even more.